.As DAPPMAN lists challenges of products availability
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), in collaboration with the Joint Task Force on Jerrycan Peddlers, yesterday raided and arrested some illegal petroleum products sellers in Abuja, the Federal Capital Territory (FCT).
This comes as the scarcity of petroleum products bites harder with attendant long and chaotic queues, spreading to more states in the country.
The NMDPRA and JTF team, during monitoring and enforcement in Abuja, in view of the current fuel scarcity, seized over 1,000 litres of Premium Motor Spirit (PMS) also called petrol and Automotive Gas Oil (AGO) or diesel from illegal peddlers.
However, states in the South East and South South where pump prices had been adjusted in line with the Independent Petroleum Marketers Association of Nigeria (IPMAN’s) directive to sell petrol at N180/litre are faring much better than others in the South West, where the product is being sold for N165/litre.
Based on marketers’ estimation in regards to the exchange rate, Platts, and cost of transportation, petrol should sell for N180/litre in Lagos, N190.20/litre in Calabar and even higher up north under a deregulated regime as intended by the Petroleum Industry Act (PIA) 2021.
Pump price variations persist despite the continued payment of bridging claims to compensate transporters – over N58 billion as at May 2022 according to the NMDPRA, for hauling PMS by road to far distances to maintain uniform regulated pump price nationwide.
Although stakeholders have continued to argue to no avail that bridging has no place under a deregulated regime, saying this serves only pecuniary interests.
As we are all aware, there is fuel scarcity everywhere, we want to see that every peddler is taken off the street.
Raiding the streets
The News Agency of Nigeria (NAN) reports that the JTF comprised officials from the Nigerian Police, Department of State Security Service, the Abuja Environmental Protection Board (AEPB), Nigerian Security and Civil Defence Corps, Nigerian Correctional Centre, the Military and Mobile Court.
The team, during the exercise, stormed some illegal areas for dispensing petroleum products, uncovered hidden storage tankers and seized containers containing diesel and PMS stored in different litres of Jerrycans from the black marketers.
Some areas raided by the team included Central Business District, near TotalEnergies fuel station, AZMAN filling station area, close to Police Headquarters, Area II, AYA and Area 3.
An illegal tanker and dispenser of petroleum products, located at Central Business District, near a popular hotel in Abuja and being operated by Emos Waga, who claimed to be licenced was also seized by the team while the operator arrested
Abuja Regional Coordinator, NMDPRA, Mrs Abdulkadir Maijiddah, said the monitoring and enforcement was an ongoing nationwide exercise and would continue to sanitise the industry.
Maijiddah said it was only licensed entities that were supposed to distribute and sell petroleum products and anyone who wished to be a player in the industry must follow due process.
“We go out every day to carry out this raid with AEPB and other security agencies. It is a collaborative effort. As we are all aware, there is fuel scarcity everywhere, we want to see that every peddler is taken off the street.
“What we just saw now is unbecoming of anybody. This product is highly volatile and then they had the audacity to hide themselves here claiming to be licensed; they are not licensed.
“And, they are selling these products illegally, they are not supposed to be on the street peddling petroleum products whether regulated or not,” she said.
Speaking on the filling stations that dispense fuel to black marketers, the coordinator warned that any station caught would be sanctioned, fined and sealed.
“We have the mandate to arrest the station manager and seal the station once found guilty,” she added.
She recalled that the authority recently met with the petroleum marketers and also emphasised that it was no longer business as usual and anyone caught would be sanctioned.
Speaking, Kaka Bello, Assistant Director, Monitoring and Enforcement, AEPB, said those caught would be prosecuted and made to face the wrath of the law.
He added that security agencies, especially the military personnel were also being invited to handle the matters if found complex.
“Even if there is licence to sell petroleum products, there must be standards for one to operate within. You cannot occupy a road corridor, selling products, even if you are licensed,” he said.
Overtime, depot owners and the government have struggled to sustain supply of petrol at the current pump price of N165 per litre despite the huge subsidy cost to government and abysmal or no profit margins to the depot owners.
Products availability
Meanwhile, the Depot and Petroleum Products Marketers’ Association of Nigeria (DAPPMAN), has assured that member companies were working tenaciously with NNPC Limited, through its marketing subsidiary, will continue to ensure availability of products nationwide.
While empathizing with the public on the current setback in the distribution and supply of petrol at the various stations dispensing at N165 per litre, the depot owners however reiterated the challenges of ensuring the availability of the product.
A statement from the Executive Secretary, DAPPMAN, Olufemi Adewole, made available to Sustainable Economy Nigeria reads: “Nigerians would please note that the on-going Russia-Ukraine War has adversely affected the world, including our dear country Nigeria. Its adverse impact on the international prices of fuel and food supply, have resulted in a corresponding increase in local prices of goods and services.
“The above situation has had its adverse effects on the operating cost of managing the various petroleum products depots in Nigeria. You would note that the petrol we supply is sourced solely from NNPC Limited’s marketing subsidiary, Petroleum Products Marketing Company Limited (PPMC) for our onward sale to the public at the regulated price of N165 per litre.
“This purchase from the PPMC is achieved through funds sourced with high bank interest charges, alongside increased costs of hiring vessels utilized in the delivery of fuel cargoes to our depots. This is coupled with the intense scarcity of bunker fuel for running these vessels with increase in the cost of diesel used in powering equipment and machineries in our depots and retail outlets.
“Overtime, depot owners and the government have struggled to sustain supply of petrol at the current pump price of N165 per litre despite the huge subsidy cost to government and abysmal or no profit margins to the depot owners.”
The group concluded that “But for its suspension, the implementation of the PIA would have provided an ideal enabling environment by creating the free market in which demand and supply would affect fuel pump price.”
